CBO: Obama Jobs Act Would Increase 2012 Deficit by $288 Billion

The Congressional Budget Office reports that the "American Jobs Act" would make the federal deficit jump $288 billion in 2012. In other words, the 2012 deficit would rise by about twenty-five percent--from $1.2 trillion to $1.5 trillion. The most recent budget fight between Republicans and Democrats resulted in just a $22 billion cut to the 2012 deficit.

The CBO predicts that over 10 years the American Jobs Act would raise enough taxes to pay for the short-term stimulus:

CBO estimates that enacting the bill would increase the budget deficit by $288 billion in 2012 and decrease deficits by $3 billion over the 2012-2021 period. That estimated deficit reduction of $3 billion over the coming decade is the net effect of $447 billion in additional spending and tax cuts in titles II through III and $450 billion in additional tax revenue from the offsets specified in title IV.

Congressional Republicans jumped on the new report to criticize the Democrats "spend now, pay later" approach. "So massive spending and deficits for a temporary stimulus bill now, paid for with a permanent tax hike," Minority Leader Mitch McConnell's spokesman Don Stewart wrote in an email to reporters.